China’s biggest lithium group, Ganfeng Lithium, has had a cash offer accepted for the UK-listed company Bacanora Lithium, reports the Financial Times. The deal, valued at £284.8 million ($391 million), gives the Chinese group control over a mine in Mexico.
Ganfeng said it had secured a letter of support from Bacanora’s second-largest shareholder, M&G, which owns 14% of the company. Ganfeng, which needs 50% of shareholders to support the deal, already owns a 29% stake in Bacanora.
The 67.5p ($0.92) a share offer had been opposed when first announced in early May. Small shareholders said it undervalued Bacanora despite the Chinese group offering a 50% premium to Bacanora’s closing share price on May 5.